Influence of relationship marketing on customer loyalty in the telecommunication industry in Dar es salaam, Tanzania

Abstract

The telecommunication industry in Tanzania is fast growing and has revolutionized the way people communicate, network or transact. This growth has led to a stiff competition within the industry and very low switching costs for the customers. In order to survive, these companies need to strategies on how best to retain their customers. The main objective of this MCOM study was to analyze the association between relationship marketing and customer loyalty in the telecommunication industry in Dar es salaam, Tanzania. The study adopted a descriptive survey design and primary data was collected using semi structured questionnaires. A sample size of 400 was derived comprising mobile subscribers from Vodacom, Tigo and Airtel living in Dar es Salaam. The results of the study established that there is a significant positive influence between relationship marketing and customer loyalty. Limitations to this study included language barrier of majority of the respondents making the study take longer than expected and budget constraints which resulted to the coverage of only one region which is Dar es Salaam. The study has made contribution to theory, policy and practice in relation to RM and customer loyalty, highlighting challenges and opportunities on how entrepreneurial leadership can leverage on these two variables to transform this technology sector. Further research may focus on studying different regions, other industries, use different methodologies, and even diversify on the relationship marketing variables.